Consider an employer who wants her employee to work hard. As is well known from the e.ciency wage literature, the employer must pay the (wealth-constrained) employee a positive rent to provide incentives for exerting unobservable e.ort. Alternatively, the employer could make effort observable by...

This paper presents a capability-augmented model of on the job search, in which sweatshop conditions stifle the capability of the working poor to search for a job while on the job. The augmented setting unveils a sweatshop equilibrium in an otherwise archetypal Burdett-Mortensen economy, and...

Finland has pursued a law-based work ability policy for more than a decade. Many studies indicate that it has been very successful from a health point of view. It has also been demonstrated that it is economically feasible both on a micro and a macro level. In the present study, a number of...

Using a modified version of the dependent economy framework, this paper analyzes a stylized small economy that is significantly open to trade and investment flows. The analysis, which is inspired by the structure of Cambodia.s economy and ongoing eþorts by international organizations to raise...